Lean Accounting

Power Audio Inc. manufactures audio speakers. Each speaker requires $52 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:

Speaker assembly cell, estimated costs:

Line Item Description	Amount
Labor	$30,000
Depreciation	12,000
Supplies	6,000
Power	2,000
Total cell costs for the period	$50,000

The operating plan calls for 800 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for each speaker is $60. During the period, the following transactions occurred:

Purchased materials to produce 2,000 speaker units.

Applied conversion costs to production of 1,800 speaker units.

Completed and transferred 1,800 speaker units to finished goods.

Sold 1,600 speaker units.

There were no inventories at the beginning of the period.